Fuel Poverty

Rising Energy Costs: What Employers Can Do to Support Their Teams

Soaring energy prices, driven by the ongoing conflict in the Middle East, are placing

increasing financial pressure on UK households already struggling to pay their bills.

Recent research from the Living Wage Foundation highlights just how serious the situation

has become. Its Life on Low Pay report (published 9th October 2025) revealed that the UK’s

4.5 million workers earning below the real Living Wage are facing significant hardship.

Three in five low-paid workers (59%) said they had skipped meals, been unable to heat their

homes, fallen behind on bills or taken out a payday loan to cover essentials in the past year.

Meanwhile, two in five (42%) reported using foodbanks – rising to over half (56%) among

those with dependent children.

The growing risk of fuel poverty in the UK

The End Fuel Poverty Coalition is now warning that the current gas and oil price crisis could

push millions more households into fuel poverty if bills rise again from July.

Although the Ofgem energy price cap is expected to fall slightly from April 2026, rising

wholesale gas prices mean costs could increase sharply again this summer.

Early projections suggest the average annual bill could increase and, as a result, the End

Fuel Poverty Coalition estimates that around 13 million households will be left spending

more than 10% of their income on energy, with around five million spending more than 20%.

Some households are already feeling the strain. Off-gas households relying on heating oil

have seen refill prices double in recent weeks. LPG customers are also facing rising costs,

while those on heat networks may soon experience significant increases as supply contracts

come to an end.

Why financial stress is becoming a workplace issue

Financial pressure doesn’t stay at home—it follows employees into the workplace.

Stress is now one of the leading causes of both short and long-term sickness absence. The

Chartered Institute of Personnel and Development (CIPD) Health and Wellbeing at Work

report found that the average number of absence days per employee has risen to 9.4 days

per year – the highest level in over 15 years.

For employers, this presents a clear challenge. To reduce sickness absence and maintain

productivity, organisations need to understand and mitigate the main risks to people’s health. They also need to ensure that the work employees are required to do doesn’t exacerbate ill health and that they provide appropriate support to help them manage the impact theirsymptoms can have on their work.

The business case for investing in employee wellbeing

According to the CIPD, investing in employee wellbeing delivers measurable business

benefits. As well as the chance to improve people’s health and wellbeing (54% of

organisations), key outcomes can be higher employee engagement (39%), less sickness

absence (39%) and enhanced employee performance (38%).

Many employers already offer support such as counselling services, employee assistance

programmes (EAPs) and occupational sick pay. While valuable, these benefits often fall

short for employees facing immediate financial hardship.

Practical ways employers can support staff during the cost of living crisis

This is where initiatives like Givicle can make a real difference.

Designed to complement traditional employee benefits, Givicle gives employees confidential access to pre-paid grocery vouchers via a simple digital platform. It’s a practical way to ease financial stress, helping employees stay focused, productive and engaged at work.

Here’s how it works:

• Employers set voucher budgets and frequency based on business needs

• Employees can download vouchers anonymously via email

• Vouchers can be used instantly in-store or online at major supermarkets

• Staff can contribute to a shared ‘giving pot’ through payroll, encouraging a culture of

support

Unlike traditional voucher schemes, there’s no need for up-front purchases or bulk

distribution. Costs are only incurred when vouchers are claimed, ensuring no wasted budget and maximum impact.

Creating a more resilient and engaged workforce

Supporting employees through financial challenges isn’t just the right thing to do – it’s a

smart business decision.

By providing practical help during periods of rising living costs, organisations can:

• Reduce stress-related absence

• Improve morale and retention

• Build a culture of trust and kindness

• Boost overall productivity

By signing up to Givicle, you can be confident that your organisation is making a meaningful

difference to employee wellbeing and motivation, while building a culture of kindness that

leads to a happier, more engaged and more productive workforce.